Excelsior Energy Limited
CNQ : EXEL

Excelsior Energy Limited

December 18, 2006 10:48 ET

Excelsior Provides Financing Update

CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) - Excelsior Energy Ltd. (CNQ:EXEL) announces that after careful consideration it has withdrawn its Short Form Prospectus Offering from the market due to the current difficult market conditions. Management and its advisors are of the view, after consideration of numerous factors, that current market conditions and uncertainties continue to cause North Sea heavy oil focused companies to be challenged in the capital markets at this time. Consequently the company and its advisors have determined that the company would be unable to demonstrate the financial support necessary to satisfy the financial conditions imposed under the terms of its agreements for Licences P.1078, P.1079, P.1080, and P.1204 and, consequently, believe that it is in the best interests of stakeholders that it withdraws from these agreements to pursue other opportunities.

With $4 million in working capital and excellent access to deal flow in the North Sea, S.E.Asia and N.Africa, Excelsior continues to vigorously pursue opportunities in our core focus areas. The Company is committed to its strategic objectives of capturing oil and gas appraisal and development opportunities where we can leverage Managements diverse international experience and field development expertise.

In the North Sea, we await the results of the UKCS 24th Bid Round where Excelsior submitted bids for six blocks encompassing gas appraisal and oil exploration potential. If successful Excelsior will hold interests between 50 - 85% working interest and would be the Operator on the majority of the blocks.

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